tv Varney Company FOX Business December 10, 2012 9:20am-11:00am EST
wolverines state set a stage today. item one, four hours from now, president obama visits a suburb of detroit. in that near bankrupt city asks for a bailout. will the president oblige. organizationed labor health. the right to work legislation. the unions hate it. will the president step in? . detroit voted for him, the unions, mr. obama is there, what is he going to do? china is here buying part of the bailed out aig, buying 123 battery company and buying american mansions. that's what happens when china has the money and we've spent all of ours. or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird...
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and big demonstrations still to come. listen to this. >> and tuesday, they're going to try to reconcile the bill and the governor who said he didn't want the legislation now all of a sudden says he's going to sign it. it's an attack on working families. whoa, an attack on working families? i'll have my take on those exact words and what they mean in the next hour. meanwhile, president obama will visit a chrysler plant just outside detroit today. remember, a city council woman last week said the city deserves a federal bailout because the city helped reelect the president. >> after the election of jimmy carter, the honorable coleman alexander young, he went to washington d.c., and came back home with some bacon. stuart: well, you heard the rest from there. the lady goes on to say it's a quid pro quo give us the monny because we voted for you. the question, will the president offer any hint of a bailout, bailout help for deeroit today. will he address union anger at michigan's right to work
legislation? this goes to the heart of government spending and the position of organized labor in president obama's second term. we're right there in michigan. let's go to facebook. weigh in on what's happening there. will detroit get a bailout and what do you think about the unions? will they win? good questions all. now, one of the worst blowouts in nfl history. seattle seahawks beat arizona cardinals 58-0. the cardinals threw four interceptions fumbled four times and gained 154 yards and seattle undefeated at home and then there's this. the new york giants scored only 52 points in the win over the new orleans saints. the star was the rookie and he returned the kick off for touchdown and all purpose yards and kept the giants in the lead. and major result for the
says that consumer spending wobbles. consumer spending-- unemployment rate at four year low. the only reason it's down is because the 350,000 people stopped lookinggfor work and the work force shhank and that's surely not good news. in a moment you're going to see if you look carefully at the lower box there on the left-hand side of the screen, those people there are the telemundo actors ringing the bell today for the nasdaq and they put their names down here, i'm afraid i don't have them handy available. they're actors. and the dow stills are off and running and we weren't expecting a big opening. we're pretty flat. dow industrials down 4. that's it.
but we have mcdonald's reporting better than expected sales in november. remember the previous month, i believe they were down and everyone was shocked. but now they're up and the stock is up, what's going on nicole. >> if you're bullish on mcdonald, complete reversal. an unexpected gain. 3 c1 2.4%. you noted that they saw the first monthly sales decline. was there a trend or something to worry about? they say no, because now the sales are showing growth once again and this isn't good news and obviously, the up hair owe. >> by the way, i'm talking about breakfast sales, that's correct? >> that's right, breakfast sales in the u.s. is something that's definitely well, offering prices and a lot of folks have a lot of money get on the mcrib.
stuart: nicole, thank you very much indeed. dow industrials are down 11. it's a flat market. the busiest day of the year for fedex, it's going to move 19 million packages in one day, it doesn't necessarily mean that people are spending more, far from it, they're shopping more on-line, a whole lot more on-line and fedex delivers for them. and fedex stock is up a fraction, not much. talk about the pot calling the kettle black. christine lagarde warned that the american economy won't grow next year without a deal on the fiscal cliff. listen to this. >> my view personally is that the best way to go forward is to have a balanced approach at that takes into account both increasing the revenue, which means, you know, either raising tax or creating new sources of revenue. and cutting spending as well. >> very interesting. europe is deep, deep in a financial crisis and ms. lagarde, who heals from tax
the rich, 75% france is lecturing america, very interesting. >> meanwhile, european markets are down and because the italian prime minister mario monti m a surprise. is going to resign. and silvio berlusconi wants to replace him. europe is appalled. and people blaming the recession for not having more children. 64 births for one thousand women of child bearing age. half of the peak of the baby boom in the 1950's. our next guest has six children, counts them. and what's that-- >> and naham segal. that works. >> have i got that word?
>> and light tte candles. >> if you light them i will come. >> you have six children. >> as do you. >> leave me out of this. >> and others people say they can't afford it you're saying it doesn't matter if you can afford them or not. >> if the price tag of having a child scares you the most, you haven't done the right gut test. stuart: so, go ahead and have the children whether you can afford them or not. >> having children is the investment in the future. if we don't have children now and understanding in the short-term there are obviously economic hardships going on, it is classic then in an economic down turn, people should-- people are thinking twice of having kids. if we do not have kids now we will not have the labor force and supply you and i the social security that we'll be due. stuart: so you're doing this for the country. >> i'm doing this for myself for the country and also becauss we have to perpetuate civilization. this is what we do. what's the point in making strides in this generation if
we're not leaving it to the next generation. stuart: are you passing judgment on the current generation having far fewer children. >> i'm not going to. and the person who says god bless you for having so many kids. >> god has blessed me. i'm not passing judgment and nobody gets to pass judgment on me either. stuart: you realize throughout the developed word when you've got a mass middle class, fee mill education and access to birth control, it plummets. in europe there's not replacement level. losing-- >> it doesn't make me comfortable that our birth rate is less than fronts. when we're talking about 20-year-old women, waiting until they're 30 and 30-year-old women in their 40's and during that gap our numbers are going to dip. do i think it's artificial?
there are a lot of factors, do i think that overall people are not making children. i think they're making choices. stuart: you're he jewish. >> yes. orthodox jewish. do they believe in birth control. >> and many rabbis agree it has it's more than the number we're looking at. stuart: you say as a matter of principle. having children is not a function of the your particular family, not a function of how much money you've got, it's something else entirely. >> it comes from a drive within.
does it help families not doing it from a religious point of view for government incentives to have other wayssto make life easier having children, making college less expensive, making child care less expensive. absolutely. if the drive is not coming from within, or there's a hesitation, someone should make it easier. stuart: and what's that. >> the nnatham segal network. that's the name of my boss and radio station. stuart: and you have six children. >> yes. stuart: are you done. >> it's all good. stuart: let's stop with the interview. >> this will continue, and it's closed. stuart: a pleasure. so much for the mighty all american consumer. government data showing that data was slowing over the customer more than previously thought. not a good sign for the economy. and what may you ask is keeping
the purse strings closed? stubbornly higher unemployment and the prospect of higher taxes next year. we have that for you. and al gore on the attack, this time around you won't believe who he's going after. new at ten, who he's attacking and why. on "varney & company" we saw this coming from a mile away. california raises taxes, but instead of helping the economy, it's hurting it. we'll bring you the story new at 10. the share price of apple is down this monday morning, how much and why nicole? >> down again for apple. dragging on technology. dragging on the nasdaq composite. today, we're talking about the price target from $800 thee citing a few factors, number one, asian suppliers that were giving better bargainn to apple and not doing that and it beats margin pressure and launching, this is news to me, i hadn't seen this, new ipads and iphones
next year, that will cut into the margins further. stuart: you know, i was watching a lot of tv yesterday, i was watching some football yesterday, and throughout the day, there were ads for the samsung galaxy scattered across everywhere. the main competitor to the iphone 5, i think it is, and they were advertising like crazy yesterday. >> and i heard other figure, the older gang is starting to get more into apple and younger folks moving towards samsung, did you hear anything like that, that's a big factor as well. stuart: it is, but i've never heard of older gang. that's all. >> you want me to say the old people. stuart: yes, seniors. >> the gang that's cool. stuart: the dow industrials 7 points higher after ten minutes worth of business, that's not much movement. is it, time is money though and 30 seconds of what else we're watching for you, another tragedy in the nfl, a player allegedly driving drunk and his teammate dies in the accident
now the dallas cowboys are ready to take a drastic step to prevent this from happening again. the judge's take on what they're proposing. we'll have expensive hanukkah menorah's onset here. the record number of americans, bringing the you this. and you've got a lot of opinions, express them, please. email@example.com, seven early movers, a wall of people, diamond foods, they posted a loss and down goes the stock. and canada's cnooc, i proved the takeover bid for oil sands operator nexen. nexen is up. a chinese group buys aig plain leasing group. and aig is virtually unchanged. you know the name, goodyear tire
and rubber transferred the stock. and mcdonald's thigh of 90 bucks. a fda panel voted against recommending zogonics, sew agzo did they recommend it, pain killer for approval and the stock goes down significantly. they voted against let's get na straight. they voted against it. and honeywell to buy intermec. up goes the stock. and apple says it's bringing manufacturing back here. is china's run of the factory, it's not coming to an end. is this a drop in the bucket? we'll have more in a moment.
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jobs from klechina. he says those jobs are not coming back. hold on, under tim cook, there could be some. and apple, bringing back-- spending 100 million to bring some mac here, i say it's a total drop in the bucket. >> it's a broader narrative of manufacturing leaving china and it's not just apple. and lenovo, china's largest pc maker, says it's bringing some production to the north carolina facility and ge, for instance, is bringing a lot of production back from china, small and medium sized manufacturers are doing this. go to wal-mart and look at the house brand george, all of it's made in bangladesh, used to be in china. stuart: why is manufacturing--
for years we've said china is the manufacturing center piece of the planet. why is it leaving? >> there are so many reasons. first of all, wage rates are going up much fraster than product ticht and labor peaked political risk is not a factor and now it is, china is trying to use geopolitical leverage and risk of intellectual property loss and china is no longer advantageous platform for manufacturing other than for china. stuart: do you think many of these jobs will come back, many of them will come back to america? >> many of them will come back to the u.s. austin consulting group says in 2015 you'll see seven industries it will be cheaper to manufacture in the u.s. than china and all sorts of manufacturing deals here. >> what. >> transportation costs are
lower. delivery to market is slashed. energy prices are much cheaper. your work force is more productive and less likely to go out on strike. stuart: wait, wait a minute. the work force in america is more productive and less likely to go on strike than china, is that right? >> in china you have one wild cat strike after another, and suicide. and they make the products for apple said 10,000 robots and in 2014 one million. wh you have robot production, that minimizes china's cheap labor. and in california where they have facilities with robots it's just as cheap orrer than a robot in shin sheng. you wait a minute how come
you're so wrong, china hasn't collapsed. >> i said it would occur in a decade, but you see the problems there, the economy is stumping and the central government is eroding and china people are taking to the streets. so, the wheels are coming off china. >> you're going to be right eventually. >> soon. stuart: within the next two years? >> maybe sooner than that. stuart: very interesting, gor n gordonment thanks as always. it's 9:29 almost 9:50, we're up ten bucks. the south korean singer psy has a mega hit with the song gangnam songs and turns out he had a song that had nasty lyrics about the u.s. and didn't prevent him from performing for the president.
gangnam style. and he had a song in 2004, and apologized for it. and he performed for the president and first lady. and do you have a problem with this man performing in front of the first family. >> i do. and, i question for someone who would-- this is the president of the united states, i don't mind apologizing and doing concerts for the united states and for my president to listen to someone. this wasn't someone a little bit anti-american or subtly. this is someone who called for the death of americans at war time. that's hard po for me to some mack. stuart: you're a tough lady. >> i'm certainly not okay with it, i'll agree with you, and if he had that sentiment at one point or anytime in his past he likely still has it today. whether or not he's profusely apologized really doesn't matter to me.
10:00, al gore says you want proof of climate change? look no further than superstorm sandy. gore calling on the president and congress to act and act now. that may mean a carbon tax? however, listen to this, a study from colorado state university says the exact opposite. that sandy was not caused by climate change. we will talk about all that in a moment. plus, you want proof that raising taxes does not work, that it doesn't bring in more money? well, in california, where they just voted to raise taxes big-time, the state is more than 800 million dollars short of the revenue it expected to bring in, because when you raise taxes, some people leave. check the big board. same old same old same old. the dow is flat, up just 23 points in the early going this monday morning. here is our company: sandra smith is with us. the conservative commentator is with us. and nicole petallides is there on the floor of the new york stock exchange. here we go, new at 10:00, the
latest climate change rant from former vice president al gore. he blames pollution for causing climate change, which he says leads to huge storms like hurricane sandy. >> it is causing these extreme weather events. dirty energy causes dirty weather. and we have to come to our senses and do something about it. i deeply respect our president. i'm grateful for the steps that he has taken. but we cannot have four more years of mentioning this occasionally and saying it's too bad that the congress can't act. stuart: all right. from the other side of the fence, we have researchers from colorado state university, they're saying, quote, our hurricane research extending over many years indicating that atlantic hurricane variability is driven almost exclusively by natural changes. they say pollution is contributing to an increase in global temperatures, but not necessarily the strength of certain storms. i don't propose, everybody, that
we discuss whether we've got global warming or not, or whether global warming is real or whether it contributed to hurriccne sandy. that's not the argument. i'm going to say that bearing in mind what former vice president gore had to say, i see a carbon tax. here it comes. >> absolutely. well, he's been very blunt about that. he's been calling on president obama to enact this carbon tax. and he's insisted that it become part of the fiscal cliff negotiations. even though it is a political long shot, he has sort of backing from grover norquist on this who is saying it would be okay to enact carbon tax if we were talking about lowering rates elsewhere. stuart: grover says that? carbon tax okay if you lower tax rates on income? sandra: he's firmly against the carbon tax. he said, however, if they were willing to lower rates across the board in many other ways, he would be willing to discuss it. yes, he did make that point. stuart: okay. sandra: however what i don't like about this is al gore using a tragic situation hurricane
sandy as an opportunistic -- stuart: he's not the only one. mayor bloomberg and governor cuomo said the same thing. harry reid said this. i take your point, but go. >> we can sit here and debate this. we don't have conclusive evidence either way. but the bottom line is he wants the government to come in and say we're going to harm small businesses here, we're going to impose the taxes, overregulate, do all the things that hurt these businesses and inhibit their ability to function and grow when we don't have conclusive evidence. that's the problem. stuart: but it's very attractive to a politician, a carbon tax, because it brings in a gusher of money. you tax companies. you tax utilities for the amount of co2s hat they put out in the atmosphere, you tax them on that basis, and you bring what, 100, 120 billion dollars a year? sandra: once they start seeing that money, they are going to want more.
it could lead to an ugly future of very high taxes and could stif business -- and it could stifle business. >> i don't think he will get support for this. i don't think the public has appetite for it. stuart: i'm not so sure. i agree that people won't like this, but when politicians need money, a carbon tax is very easy answer. especially if they can say look at that storm. just look at sandy. you don't want more of this, do you? you have to take measures. >> if we have an appetite for this, if a carbon tax is something we can tolerate, i think we're in bigger trouble. stuart: now to nicole. what's going on, microsoft? nicole: merry christmas stuart varney you are going 1.2% -- you are gaining 1.2% today in your big investment in microsoft. it's a dow component. so many people hold it in their mutual funds. familiar with the surface tablet and new windows 8.
but it is interesting because they are talking modest sales for the tablet, which is actually some good news because some people were very worried about it and they obviously compete directly with dell and hp with this. so so far so good. -- so so far so good. sandra: microsoft up 3% year to date. 3%. it's gone nowhere. stuart: 3% gain in the stock price, plus 3 1/2% dividend yield. sandra: okay. stuart: that's 6 1/2%. that ladies and gentlemen is surely better than what you get on a cd. sandra: take advantage of the dividend before the end of the year. stuart: nicole, my children keep asking what do you want for christmas? i think i decided. i want what do you call it? the surface tablet? that's what i want. nicole: that would be good because then you could figure it out and talk about what you like and don't like about it. you can teach us all. stuart: that would be good. unfortunately none of them are watching. all right everybody if you raise
taxes on the rich, they will change the way they use their money. they change their behavior. they do, you know. new numbers from california proving just that. the formerly golden state's total revenues down -- not down 806 million dollars less than what they expected to bring in despite and perhaps because of those new taxes that they put in place in early november. by the way, that revenue, down 10% from what they expected to brings in. -- to bring in. joining the company now is the author of "how rich people think". very interesting. this is happening in california with higher taxes, less revenue than pt xed. -- than expected. do you think the same thing would happen if and when president obama sticks higher taxes on the rich nationally? >> of course. no question about it. we have a spending problem here. the government has an unlimited credit card. they keep printing money.
it's a spending issue. if they stop spending, we don't have to keep raising taxes. it is not a tax issue at all. it is not going to solve it. stuart: what do rich people do? in california, i can understand you can move. you can go somewhere with a different tax structure. if we impose higher taxes on a national level, not that many people are going to leave increase, are they? >> well, you know, a lot are leaving france. france is not america, of course. they probably won't leave america. but, you know, i think first of all we've got to state this fact that this is a delusion that people making $250,000 a year are rich. this is clearly the upper middle class. these are the people that are going to get hurt. the wealthy, i mean the mitt romneys and the donald trumps of the world, they have been preparing for this for years. they have a team of wealth advisors, all the rich people do. they're prepared for this. stuart: how do they do it? how do they avoid -- if i'm rich and i know that come january the 1st my tax rate goes from 35 o
39 percent, i know that in advance, how do i avoid it? >> i was talking to my financial advisor a few hours ago. he was saying he has all kinds of clients transferring their businesses to their heirs, to their kids' names, putting their significant assets in their children's names to avoid the giant hike in the estate tax. this is one of the things they are doing. they are putting money in, you know, tax-free and tax-deferred accounts. i mean, they're preparing -- that's what people need to be doing if they are not ready, that's what they do if they have any kind of assets whatsoever. stuart: your book is called "what rich people think" is that a correct title? >> "how rich people think". stuart: okay. do they hate tax rates at this level, is it that kind of emotional response, is it? >> this is class warfare, stuart, against the rich. all of a sudden, in this country, anyone who makes $250,000 a year or more is suddenly an evil person, and
without -- i will tell you what, you give me the people who make $250,000 a year or more in this country and we will start our own country. in ten years that country will be rich and this country will be broke, more broke than it is now. stuart: do you happen to know the answer to this question, which is the most rich-friendly country in the world? >> i would say switzerland. stuart: low tax rates there? >> i think they are the friendlyiest to the rich. that's just a guess. i don't know for sure. stuart: but i can't put my money in switzerland now. you get a rich guy in america, he puts his money into a swiss bank account that has now to be declared to the irs. the irs has to know that you've got that money there, and that if it's earning income, you're going to have to taye pax on it over there. -- you're going to have to pay tax on it over there. the swiss bank account is no longer the escape hatch that it used to be, now is it? >> no it's not. you can keep it there. once you bring it back, you will have to pay taxes. it is not a shelter, absolutely
not. stuart: to sum it up then, the rich people are avoiding these tax rates? >> absolutely. i mean, and they're cutting spending, and here it is right in today's morning paper, consumer spending wobbles. here it is. consumer spending is 65% of gdp. that goes down. the other sectors are fumbling. we're in big trouble. i think we're in much bigger trouble on january 1st. stuart: thank you very much. >> thanks stuart. stuart: we are in a holiday spirit on varney & company. [laughter] stuart: we will have menorahs on set. that will be coming up at 10:33.
president obama is heading right into the eye of the storm today. a big union fight in michigan. michigan the home of the powerful auto unions could become a right to work state. the governor is expected to sign a new law tomorrow, right to work, michigan, 24th state. unions have been protesting and bigger demonstrations are planned. listen to this: stuart: got pretty noisy. all right, all rise, judge andrew napolitano is here. judge, welcome back. >> thank you, stuart. stuart: now i think -- if a state becomes right to work, essentially that means that a union may not force its members to contribute dues. union membership becomes voluntary. am i right? >> well i would state it slightly differently, but we end up at the same point. in a right to work state, the
state does not force people to join unions. stuart: okay. >> in a nonright to work state, it is a law that you join or contribute to the unions. so if you choose not to join, your employer is required to deduct from your salary the dues for the union and remit it to the union, whether you physically join, sign up the papers and attend union functions or not. stuart: outrageous. >> it is outrageous. that's because the unions hhve gotten into bed with thh politicians and have voted for politicians to enact legislation that forces people to violate their freedom of association rights by choosing not to associate. stuart: what about the other side of the fence, professional associations like the american medical association or some professional organization or grouping, could they demand dues from people who do not join the association? >> i think -- stuart: i don't think so. >> probably lack the political clout, the numerical clout of
labor unions, and i don't mean to criticize them, but they would love to have that kind of political clout, but they have not soughh nor will they ever attain the ability, the power of to join the ama.ce all doctors look, tte 1st amendment guarantees freedom of association, also guarantees the reciprocal of that, which is the freedom not to associate. if r the state to force -- for the state to force you to 3 associate with a group of people you don't want to be a part of and pay money to that group is theft. stuart: michigan of all places may become the 24th right to work state. >> it is surprising in michigan. i understand their animosity. it is the home of the automobile industry in the united states of america or was for a couple of generations. and they just had legislation at a referendum. stuart: it will be signed tomorrow. >> correct. the people themselves voted to say this is a right to work state. stuart: it's an extraordinary
development. judge stay there, please. a lot more from you still to come. it was a tragic weekend for the dallas cowboys defensive lineman. he's charged with drunk driving and manslaughter in the death of his teammate. as a result the cowboys may install drunk driving monitors in every player's car. could it happen at your workplace? what kind of intrusion is that? is it legit? is it legal? the judge is still here and will address the issue next. you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gavicon®. only gaviscon® forms a prottive barer that helps block stomachcid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®.
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stuart: i've been saying this all morning, i have to say it again, a flat start to the market as of this monday. right now the dow industrials are up a mere 21 points. that's flat. new concerns about consumer spending in the "wall street journal" consumers had been supporting the economy, but the journal says employment still weak? still major uncertainty about tax rates for the new year and all that's making people very cautious about their spending. could be bad for the economy. big headline in the journal today. we are continuing to watch apple. down again this morning. jeffries, a brokerage firm, lowers its price target. only going to get $800 a share, sayses jeffries. it was at 900. we're coming down. down for the stock. groupon also lower this morning. it jumped on friday on reports it could be a takeover target for google. whether it is or not, i don't know, but it is down this morning. all right. we're back in 90 seconds with the drastic steps the dallas cowboys are considering after this weekend's tragic accident.
stuart: horrible story over the weekend. dallas cowboys player josh brent allegedly driving drunk flips his car. his passenger and teammate jerry brown killed in the accident. the cowboys are looking into all options to protect their players. including installing devices that would immobilize the car if the driver of the car.
the judge is here. do they have the right to intrude into players' cars and install a device that you can't drive it if you are drunk? >> do they have the right? not is it the right thing to do but do they have the right thing to do? well, they are not the government. and the young man who is accused, he's still innocent, because he's innocent still proven guilty accused of this awful event is free to work at another football team. so under that theory, he's voluntarily there and he voluntarily accepts the restrictions. look, professional athletes have a lot of restrictions. stuart: extended all team members, judge? they would extend it to everybody gets one of these devices. >> now, you're going to touch the other side of me which is why are they punishing everybody because of what one person did. that's preposterous. stuart: because the reputation and value of the team is at
stake. >> they have the right to do it because they are free to go work somewhere else. were the government to do it to us where we were not free to have another government, it would be a different story. stuart: they made it a contractual obligation, you sign a contract to play for the dallas cowboys and you have one of these things in your car. ? >> that's a great question. they're basically to persuade a colle collective bargaining because those contracts are negotiated by a players association to do it retroactively almost impossible to do, but in this with it. whether it spreads to other teams or not, that remainn to be seen. stuart: these are young men with a lot of money, and alcohol has been a factor not just in performance on the field but their social life in the past. is it the right thing to do to take this precaution? sandra: i think like many things
it doesn't go to the root of the problem. there's got to be a problem elsewhere. i think there's better solutions. if you are going to go to that level, why not assign a dd to every player? why not let them not drive cars period? >> what will the next step be? if they're monitoring this now, what does step two become? in my mind my imagination runs and that is a little bit scary. >> punishing everybody because of what one has done. the most horrific regimes in history without giving their names thrived on doing that. one guilty person, we will punish everybody in your group. stuart: what about the results of ttis kind of action. >> the results of this kind of action will be the reduction of their sense of personal responsibility. stuart: maybe fewer deaths, judge. >> well, there would be fewer deathh if we didn't use steak
knives. there are a lot of aspects of human existtnce which we require for our society which when abused cause death but we don't have the government take them away from us. >> reminds me of the gun control argument. >> same principle. one nut kills innocent people so we should all lose the right to defend ourselves? these are natural rights, the right to decide what to put in your body and defend yourself. and the government and our employers should not be taking it away because of the abuse of a couple of crackpots among us. there are crackpots among us. stuart: yes, there are. let's leave it at that. keep saying whenever they have a fight on their hands, and i'm tired of it. my take on union spin next. >> announcer: you never know
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coming off china. stuart: that was in our last hour on apple production, some of it a tiny fraction of it coming back to the united states. apple stock by the way down 5 bucks today. time for a market check. take a look at the big board, 20 points higher, that's it. priceline shares, though, they are coming down some. i want to know why as usual. nicole? nicole: well, take a look here. no same old for priceline here. this is a stock actually has been a winner, but it is down over 4%. that's a loss of 28 bucks and so big move downward for priceline. we got a downgrade too that we should note here, deutsche bank cutting the stock to a hold from a buy with a price target now of 710 from 800 which still is upside from the current levels but off the 800 level which obviously was better. sttart: those analysts actually never work it out. all right nicole thank you very much. tonight is the third night of hanukkah, it is also call the festival of lights. at 10:35 this morning, we are
going to bring you some of the menorahs. they are worth tens of thousands of dollars. stick around for that. i was listening this morning to some union leaders protesting michigan's new labor legislation. governor schneider and the republicans are about to make michigan the 24th right to work state. that means a union can't force people to pay union dues. membership would essentially be voluntary. no closed shop. here's my take on the attack on working families. those were the words used by the union leader. first, the word attack. really? labor is being attacked because a union can no longer force people to pay? nonsense. that's just a tired talking point. that language reminds me of the 1970s when unions in league with lousy management ran america's car industry into the ground in michigan. then there are the words working
families. another tired talking point. i have asked leftists many times on this program, go ahead define working families. they can't. i work. i have a very large family, six children, seven grandchildren. of course i'm not in the working family group because i am assumed to make far too much money. exactly where the income cut-off point is, never been able to find out. to these old-line union guys it is just us and them, hopeless, how can you run a modern manufacturing facility with an attitude like that? have these people learned nothing? detroit collapsed. the president used taxpayer money to bail out the auto workers union and it is still not enough. no, working families are under attack. all i can say is i'm very happy to see legislation start to reign in this kind of destructive attitude because frankly i'm tired of paying for it and i'm tired of being told that somehow making money is not
work. go for it, michigan. show you are a part of working america. the varneys are not a working family. [ male announcer ] this is steve. he loves risk. but whether he's climbg everest, scuba diving the great barrier reef with sharks, or jumping in the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dim him with hidden fees. so he can worry about other things, like what the market is doing andeing rdy, nmatter what happens, which isn't cket science. it's just common sense, from td ameriade.
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$101,000. which is 16 1/2% less than last year and a 50% decline from the good old days back in 2006. we love to show you cool expensive items on this program. we had diamonds last week. remember? well, today, is the second day of hanukkah. we have some very expensive menorahs. joining us now is the founder of j greenstein and company. it's an auction house that deals with jewish religious items. can touch it, i won't. i feel guilty. [laughter] stuart: this is $100,000? >> yes. it's an extremely rare piece. it was made approximately 150, 170 years ago. and the value of an antique
jewish ritual object increases. this could be done as an investment or decorative item. only auction house that's dedicated solely to antiques, we do nothing else. stuart: what gives this $100,000 worth of value? >> rarity and beauty. stuart: it is very rare to have something as old as this? >> absolutely. but more importantly it is extremely attractive if you look at the menorah in front of it, it was made in 1861. it was made in poland. it's attractive but nowhere near as glamorous as this one. this would sell approximately $7,000, maybe $8,000 at the most. stuart: what do you mean not as glamorous? is it the art work involved? >> jews were very poor only when we came into this country that we were allowed to go into
certain industries. you found the silver smith you gave him the general design of what you wanted and he would make it for you. stuart: is this investment vehicle -- forgive me for calling it that. >> no question about it. stuart: is ittavailable to non-jews? >> absolutely, 100%. stuart: have you ever sold a menorah that's going to go up in value to a non-jew? >> no, we have sold to museums, though. there are several museums that buy from us. they don't buy it as an investment. -pstuart: do you think by comin on this program and showing the world what you have, and telling the world as you have that this is an investment vehicle, because this is now $100,000. it sold in 1986 for 25,000. >> yeah, something like that. stuart: roughly. >> roughly, yeah. do you think you are opening this up to non-jews as investment vehicles? would you welcome that? >> i welcome anybody who can appreciate our jewish history and jewish art whether hey do it for dollars or for beauty.
stuart: this one right here. >> this one was made in the ukraine. stuart: i'm going to point to it. that's the one. okay, yes. >> it's purported that he used this style of menorah. whether that's true or not, nobody really knows but because it was made in the ukraine in approximately 1800 which is about 70, 80 years after his passing, actually a little bit more than that, it's purported to be his style. stuart: okay. >> this would sell for about -- because of its size, it would sell anywhere between 30 and 40,000 dollars. stuart: okay. all these items will be auctioned soon? >> in the near future. we only have auctions twice a year. stuart: just twice a year? not a rolling auction? >> no, only 600 collectors throughout the entire universe that we have on our mailing
list. i'm sure there are more waiting to be born. a collector is born, not developed, whether he puts his heart into -- stuart: an investment vehicle. >> you talk about the money. i will talk about the beauty. i absorb the stuff. it is gorgeous. stuart: would you mind if i asked a personal question? >> absolutely. married with five kids. stuart: that's not it. married with six kids. i got you on that one. recently i have been contributing money to the salvation army. the bell ringers wished me happy holidays. they're a christian organization. >> wish you merry christmas. stuart: so you would not be offended? >> absolutely not. you approach him differently. i approach him differently, but
we all appreciate him. >> thank you very much. will you come back? >> yes, absolutely. stuart: thank you very much. >> pleasure. stuart: it's battleground michigan for the unions, right to work signed into law tomorrow and in just a few hours, president obama visits that state to push for higher taxes on the rich. makers versus takers, we're covering it. okay? now, please, ladies and gentlemen, will you all wish me in wishing happy birthday to our director nancy? it is her birthday today. happy birthday indeed nancy. ♪ happy birthday to you stuart: you see the back of her head, that's because she is directing, serious stuff, ladies and gentlemen. happy birthday nancy. you are great. we will see you in a minute. ♪ happy birthday to you ♪ happy birthday to you .
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stuart: the gap, they sell clothing. their stock price is down. nicole, the age old question, why? nicole: yeah take a look here, in this case it's actually technical. sometimes we see a reason why there's selling, maybe some analyst downgrades, in this case, i have been talking with some traders, and the gap is actually testing that 200 day moving average and breaking below it so 30.54 and there it is below that 200 day moving average. that becomes a sell signal to some. that's a loss of 4 1/4% for the gap and under the umbrella is banana republic and old navy. stuart: i remember the gap when it emerged in the 1970s. nicole, do you shop at the gap, yes or no? nicole: i don't shop that much. i would shop there if, you know -- i don't really shop -- stuart: so you don't. thank you, nicole. that's a no. nicole: yes i would go there. sandra: i haven't set foot in a gap in at least seven years. >> i like the pajamas.
nicole: you are leaving out their best brand, the banana republic. ask the question again. i would go to banana republic more. sandra: it's not just the gap stores is what she's saying. stuart: are they all together? >> under the same umbrella. stuart: who knew? thank you, everybody. we have been talking about the right to work battle in michigan all morning. former nlrb chairman is here with us on that subject. peter, it's going to happen, isn't it? they are going to be right to work, and i want to know -- you're an expert in the labor field. is this going to spread to other midwestern industrial pro union states, do you think? >> i suspect it will, stuart. good morning by the way. stuart: yes, sir. >> i think, you know, the reason right to work laws are being passed is because the predominant union model which % goes back to 1930s, 1940s is really a combative one. it doesn't pay enough attention to the need for an employer to make a profit.
it imposes unreasonable work rules. it zaps the company's entrepreneurial spirit. think of seniority when it is not tied to performance. stuart: is it possible for the obama administration to stop the trend or get in the way of it or block it in some way? you're former chairman of the national labor relations board. as i understand it, the president is stacking that national labor relations board with people on the left. would they be in a position to stop this right to work trend? >> no, they would not. the statute specifically gives the states the right to pass a right to work law. and i can't think of anything that members of the board could do to stop that. there was a little bit of an effort to do that with regard to boeing. but that was indirect and not direct. i don't think it would have been effective anyway. stuart: right, if i'm right, and i believe i am, that the prrsident is stacking the nlrb,
what can they do, what do you expect them to do in this second term to enhance the union movement? >> you know, a variety of different things they can do. they can grant access to union agents to an employer's premises after a petition is filed. they could reverse existing board law and give employees the right to use an e-mail system to engage in union activities. any variety different things the board can do to enhance union power but really to the detriment of legitimate management interests and the right to workers. stuart: as a balancing act here, on the one hand you have the right to work movement which seems to be really gaining ground, on the other hand, president obama has a second term, he's very much pro union and he's stacking the nlrb. the balance seems to me that organized labor is not doing as well as it was expecting to do
in the second obama term. would you agree with that? >> well, i think that's correct. i don't think it's necessarily tied to the president. i think it's necessarily tied to really a growing predominant view that unions are not conducive in many ways to job creation. one only has to look at the recent hostess fiasco which really underlines that. unions have to look in the mirror, try to reinvent themselves, and my suggestion would be they really ought to spend -- get out of politics and spend union dues on reinventing themselves and on organizing. a vast majority -- i don't know exactly what the percentage is. you hear different numbers -- is used by organized labor for unions. they spent over 400 million dollars to get president obama re-elected. stuart: 400 million, that's a gigantic chunk of money. peter, always a pleasure, thanks very much for being with us, on a very important day. tomorrow will be a very important day because it is right to workday back in
michigan. we appreciate you being with us. >> thank you very much. stuart: yes, sir. the white house sends out invitations to the inaugurations a lot of cash in return for access. does that sound just a tad hypocritical? we will deal with it next. streamline the proce? at fidelity, we it by merging two toolinto one, combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and ex points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated techcal analysis one more innovative reason seous investors are choosing fidelity. now get 200 free trades when you open an account.
eastern, the obama middle east policy, it is in tatters. former ambassador to iraq, former director of national intelligence joins us tonight 7:00 eastern. stuart: if you want to attend a children's concert, a candle light celebration of the national building museum, have two bleacher seats at the inauguration, four tickets to the president's official inaugural ball, just have your institution fork over a million dollars. president oeb that's team sent -- president obama's team sent out an e-mail detailing four different packages that you could purchase in order to participate in the inaugural events. some critics say obama is abandoning his pledge to keep money out of politics. what do you say? >> crony capitalism on display. what are these companies and corporations going to get from the president down the road after funneling all this money into his inauguration? i don't like it and i don't like it specifically with respect to him because he ran against everything that this represents. he said he was going to change
washington. he was going to change this cozy relationship between business and himself. sandra: but he said he can't change washington from the inside. so he's changed his mind on quite a few things since then. and remember, this is -- we were talking about this during the break, this is what we have seen in the past. this is no different. individuals, 250,000 compared the corporations a million dollars, but remember this s because all the big bucks that were spent during the election. stuart: would you rather have the taxpayer pay for the inauguration or corporations? sandra: absolutely not. i would obviously like the corporations to pay for it. >> what about the extra money he had from his campaign? does he have any extra cash or how about some of our extra stimulus money? we already paid for stuff that we don't need to use. let's funnel that over. stuart: this is a difficult story because we have another record high for food stamp recipients, 47.7 million people on food stamps in september. by the way, sandra, that is up 607,000 in one month. sandra: yeah, and unfortunately,
right now it's more profitable if you're at the poverty level, it is more profitable for you to stay home and collect government funding, food stamps is just one part of it than it is to go out and earn a living at the average income in this country because dollar for dollar, you would get more from the federal government in the form of federal help than you would just going out and earning a living. stuart: is that why 350,000 people dropped out of the labor force in the latest reporting period, is that part of it? sandra: they are not incenti incentiveized to go look for work if they know they can take part in the government federal spending program that -- government federal funding program. >> people are more reliant on government. there's less personal responsibility and self-efficiency. it is drowning the country. stuart: the number that gets me 607,000 people in one month in four weeks, that's 150,000 a
week being signed up for food stamps. i don't know what the cost is to the taxpayer of each person. but 150,000 a week is a massive number. 600,000 a month? sandra: and cory booker is doing this experiment spending $30 a day on food stamps, etc. which is not a good example of what the money actually looks like if you're receiving federal help, it is much more than just food stamps. stuart: it is whatever it is per person. sandra: right. stuart: all right, everybody, the highlight reel is coming up next for you.
it occurs to me, this is a one hour 40 minute show. i did not think we have used the words fiscal cliff this monday morning. >> we have not. i had a very high class economist, strategists, d.c. insider. they were optimistic. they see this fiscal cliff at the end of the year. even if it is a bad deal, we will have much stronger growth at the back half. stuart: do they think president obama gets the credit for this? >> they were not really keen on saying that at that very moment. certainly, if we fall off the cliff, it will be the republicans fault. >> i think it will be a bad deal. i do not see serious spending